Amazon CEO Andy Jassy Forecasts Potential for Two Trillion-Dollar Revenue Streams
Amazon (AMZN) shares fell approximately 7% in after-hours trading following a third-quarter earnings report that highlighted significant capital expenditures. While revenue grew 12% to $201.9 billion, slightly missing analyst estimates, operating income saw a robust increase of 61% to $28.1 billion. Investor concern remains centered on the company's massive AI-driven spending, evidenced by a $42 billion free cash flow loss over the last four quarters and a projected annual capex of $220 billion. Despite the immediate market reaction, CEO Andy Jassy provided an optimistic long-term outlook, suggesting Amazon could operate two separate trillion-dollar revenue businesses within the next five to ten years. This vision relies on the continued expansion of its e-commerce segment and significant growth in Amazon Web Services (AWS), which is expected to benefit from AI tailwinds with projected revenue growth of 40% in 2027 and 2028.
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Topics: AI Investment Amazon Earnings Capital Expenditure Free Cash Flow Revenue Growth
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Part of the story Amazon Projects AWS Could Become a Trillion-Dollar Revenue Business Within a Decade (4 articles)